US midterm elections, the latest employment data and quarterly earnings from major technology companies are expected to dominate Wall Street’s agenda in the week ahead, as investors assess the economic and political developments shaping financial markets.
The US midterm elections, scheduled for Tuesday, will determine whether Democrats can wrest control of Congress from President Donald Trump’s Republican Party. While Democrats are widely expected to gain control of the House of Representatives, the Senate race remains uncertain.
Republicans currently control both chambers of Congress. A change in the balance of power could influence the Trump administration’s legislative agenda and introduce fresh uncertainty for financial markets.
October jobs report in focus
On the economic front, investors will closely monitor the US employment report for October, scheduled for release on Friday. The data is expected to provide important clues about the health of the labour market and help determine the Federal Reserve’s next monetary policy moves.
In particular, investors will assess whether employment conditions and wage growth could influence the timing of another interest rate increase by the US central bank.
The employment figures will follow encouraging economic data released during the week. Figures published on Thursday showed that the US economy expanded at its fastest pace in a year during the third quarter, supported by resilient consumer spending and increased business investment in artificial intelligence (AI).
The Federal Reserve also upgraded its assessment of the US economy while keeping interest rates unchanged this week.
Investors will therefore examine the October jobs figures for indications of whether economic growth and labour market conditions could prompt the central bank to maintain its current policy stance or consider further tightening.
Corporate Earnings
Corporate earnings will be another major market driver, with several prominent technology and AI companies scheduled to announce their quarterly results.
Apple is due to report its earnings on Monday. Shares of the iPhone maker have gained approximately 27% so far this year, making its latest results and outlook particularly important for investors.
Other major technology companies expected to announce results include Advanced Micro Devices (AMD), Qualcomm and Palantir Technologies.
More than 100 companies listed on the S&P 500 are also scheduled to report their quarterly earnings during the week. These include McDonald’s, Amgen and ConocoPhillips.
Investors will closely examine revenue growth, profit margins, forward guidance and management commentary to assess corporate performance amid concerns over elevated technology valuations.
AI-related sell-off puts pressure on Wall Street
Technology stocks came under further pressure on Friday as concerns grew that the enthusiasm surrounding artificial intelligence had pushed valuations beyond sustainable levels.
The sell-off dragged major US equity benchmarks lower, with the Nasdaq Composite recording the steepest decline.
The S&P 500 fell 140.32 points, or 1.8%, to close at 7,580.07. The Dow Jones Industrial Average declined 572.25 points, or 1.1%, to 51,770.31.
The Nasdaq Composite dropped 747.73 points, or 2.9%, to settle at 25,437.
US Economic Calendar
November 2 (Monday): US Manufacturing PMI for October; ISM Report On Business Manufacturing PMI for October
November 3 (Tuesday): Job Openings & Labor Turnover Survey for September
November 4 (Wednesday): ADP National Employment Report for October; US Trade Balance for September; US Services PMI for October; ISM Report On Business Services PMI for October
November 5 (Thursday): Weekly Jobless Claims
November 6 (Friday): Employment Report for October
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